According to a report by CBRE, changes to policy in the past decade have increased the amount of tax payable on both purchasing a buy-to-let property and its rental income, leaving many landlords leaving the market due to growing cost pressures.

This has resulted in the loss of approximately 400,000 rental homes in the past seven years, aligned with the additional rate of stamp duty for second properties, which increased the upfront cost of buying a rental property.

On top of this, the rise of the Bank of England’s base rate, which started in 2022 and has gone from 0.25% to 5.25%, has ultimately led to higher mortgage costs.

CBRE has warned that if the trend continues, the UK will lose almost 10% of its private rented households by the end of 2023.